Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company had cash working capital of approximately $328,000 at December 31, 2008. During the years ended December 31, 2008 and 2007, the Company used approximately $46,500 and $40,500, respectively, of cash for operating activities. During the year ended December 31, 2007, the Company received net proceeds of approximately $401,000 from the sale of common shares in a private placement offering and a warrant exercise, from which, proceeds are being used to fund operations. Management believes that the Company can satisfy its cash requirements for the next twelve months.

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SUPERIOR SILVER MINES, INC.

Form 10K December 31, 2008